Parliament Briefed on Twin Peaks Regulations

National Treasury

National treasury recently briefed parliament on the Financial Sector Regulation Act regulations.

The act came into effect at the end of March 2018.

The act aims to put a twin peaks model of financial sector regulation in place in South Africa.

The twin peaks model will see the Financial Sector Conduct Authority overseeing market conduct while the Prudential Authority will take responsibility for prudential regulation.

The act also wants a Council of Financial Regulators set up to ensure cooperation between the twin peaks regulators and other financial sector-related regulators.

A Financial Services Tribunal is also on the cards to deal with appeals.

The regulations were also published at the same time and came into effect on 29 March 2018.

They set down the transitional processes to set up the Financial Sector Conduct Authority and the Financial Services Tribunal.

The regulations also outline the appointment processes for the commissioner and deputy commissioners of the Financial Sector Conduct Authority.

Treasury pointed out that the intended purpose of the regulations is to facilitate the smooth implementation of the act and the setting up of the financial sector regulators and the Tribunal.

The reserve bank also briefed the standing committee on finance on the implementation of the Prudential Authority (PA).

The PA consists of four departments, namely, Banking Insurance, Market Infrastructure and Cooperative Financial Institutions; Risk Support; Financial Conglomerate Supervision and; Policy, Statistics and Industry Support.

The committee raised concerns over the processing of the regulations and in particular, pointed out that the regulations had not been tabled in parliament.

The draft regulations were subsequently tabled in parliament on 20 April 2018.

Meanwhile, the South African Revenue Service published two amendments in Gazette 41577 to Customs and Excise Act rules DAR 173 and 174.
Sabinet Cape Town Office

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